Tax obligations for Non-Residents.

If you own property in Spain you are obliged make income tax returns for any rental income you receive.  This must be done in following quarter that the property is rented. Currently tax is charged at the rate of 24% of income, with no dedcutions for expenses.

 

If the property is not rented at all or for any part of the year, then income tax is payable on an imputed income, chrged at 24% of 2% of the rateable value (Valor Catastral) unless the Municipal rates were revised, in which case the tax is based on 1.1% of the rateable value. Tax is payable annually any time in the following tax year. 

 

However Non-residents with more that one property, must file betwen 2nd May and 30th June of the following year.

 

Up until 2007, Wealth Tax was also payable based upon the value of net assets in Spain, however with effect from the 2008 tax year, the Government are applying a 100% exemption.

 

So, the last filing date for Non resident income tax for the 2008 tax year is the 31st December 2009, and for 2009 31st December 2010.